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3 years ago

PA11.

Business

1 answer:

NARA [144]3 years ago

4 0

Answer:

Using Traditional allocation method

Allocation rate per unit

= Budgeted overhead

Budgeted direct labour hours

Brass

Overhead allocation rate

= $47,500

700 hours

= $67.86 per direct labour hour

Gold

= $47,500

1,200 hours

= $39.58 per direct labour hour

Using activity-based costing

Brass

Allocation rate for material cost pool

= $12,500

400

= $31.25 per material moved

Gold

Allocation rate for material cost pool

= $12,500

100

= $125 per material moved

Brass

Allocation rate for machine set-up pool

= $35,000

400

= $87.50

Gold

Allocation rate for machine set-up pool

= $35,000

600

= $58.33

Explanation:

Using traditional allocation method, the overheads for material cost pool and machine set-up pool will be added. The overhead allocation rate per unit is the division of total overhead by the direct labour hours for each product.

Using activity-based costing, the material cost pool overhead will be divided by the material moved for each product in order to obtain allocation rate for each product.

The allocation rate for machine set-up pool is obtained by dividing the machine set-up overhead by the number of machine set-up for each product.

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Answer:

C) increase their savings

Explanation:

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1 year ago

Alison has all her money invested in two mutual funds, A and B. She knows that there is a 40% chance that fund A will rise in pr

Daniel [21]

Answer:

A. 0.24

Explanation:

From the question ,

The probability that mutual funds A will rise is 40 % , i.e. , P ( A ) = 0.40

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Therefore , to calculate the probability that both funds will increase is given by P( B n A ) .

Since ,

P ( B | A ) = P (B n A) / P(A)

Now, putting the respective values -

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rearranging ,

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3 years ago

A firm currently sells $1,750,000 annually of an expensive product line. That firm is considering a similar, less expensive, dis

stepan [7]

Answer:

$175,000

Explanation:

A firm currently makes an amount of $1,750,000 annually from an expensive product line

The firm projects a sales of $380,000

The discount line is expected to cause a reduction in the sales of the expensive product line to $1,575,000

Therefore, the incremental revenue associated with the discount product line can be calculated as follows

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Hence the incremental revenue associated with the discount product line is $175,000

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3 years ago

You own a stock that has an expected return of 15.72 percent and a beta of 1.33. The U.S. Treasury bill is yielding 3.82 percent

Elza [17]

Answer:

option (b) 12.77 percent

Explanation:

Data provided in the question:

Expected return = 15.72% = 0.1572

Beta = 1.33

Risk free rate = 3.82% = 0.0382

Inflation rate = 2.95% = 0.0295

Now,

Expected return = Risk free rate + Beta × (Expected market return - Risk free rate)

0.1572 = 0.0382 + 1.33 × ( Expected market return - 0.0382 )

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jeka94

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